Which of the following statements about period costs is FALSE?
A) Period costs refer to distribution costs and design costs.
B) Period costs include R&D expenses, marketing costs and customer service costs.
C) Merchandising and manufacturing firms treat period costs differently.
D) For merchandising firms, Cost of Goods Sold is not a period cost.

Question

Quizplus · Accepted Answer

Period costs are treated the same way in both merchandising and manufacturing firms, as they are expensed in the period they are incurred and not assigned to products.

Which of the Following Statements About Period Costs Is FALSE